SF City Council terminates Midtown development deal

Investments needed before development can proceed

SANTA FE — It’s back to the drawing board for Santa Fe.

Santa Fe city councilors unanimously agreed to mutually terminate a negotiating agreement with developers of the Midtown campus, leaving the city starting fresh with the ambitious and increasingly complicated development project.

The vote came a week after the master developer, KDC/Cienda, submitted a letter stating the COVID-19 pandemic and deteriorating conditions made the development of the 64-acre Midtown campus not viable, and requested a mutual termination of the agreement.

While KDC/Cienda could have terminated the contract on its own, Thursday night’s vote by the City Council makes it a mutual agreement.

The vote sets back plans for the Midtown campus, at least temporarily. City officials have said the campus could be used for various housing, artistic and job opportunities in Santa Fe’s geographic center.

Councilors expressed disappointment with the deal falling through, but said it still presents opportunities to improve the conditions of the campus and rethink the final look of a completed campus.

“I think a lot of us really saw a great future with this property,” Councilor Michael Garcia said. “I know that’s still gonna be

the case.”

For now, the exact future of the campus remains unclear. Economic Development Director Rich Brown said his team will present the council with a new recommendation at its Feb. 24 meeting.

Mayor Alan Webber told reporters Monday the pandemic has forced the city to rethink what could go on the campus. Previous ideas, such as commercial office space, seem less viable in current economic conditions.

But the city will also have to tackle the condition of buildings, including an asbestos dump somewhere on the campus. Webber said Thursday the building isn’t “shovel-ready,” and will require significant investment to get it ready.

He also implied the Santa Fe University of Art and Design, which leased the campus from the city before it closed in 2018, hadn’t properly maintained the campus.

The city has requested $10 million from the Legislature for infrastructure improvements on the campus.

Some councilors said the future process for Midtown, whatever it may be, needed to be more transparent. Councilors and community members criticized the project for excluding the public too often, especially with the selection of KDC/Cienda in May 2020.

“I’m wanting to see more public meetings on this,” Councilor JoAnne Vigil Coppler said. “Everything appeared to be held behind closed doors, even from us.”

The project, though, is still years away from completion and the city has more than $30 million left in payments on the property, according to city records. Some councilors noted the public pressure to get a Midtown project completed.

“We’re paying about $7,000 a day on that property and we need to put it to use,” Garcia said.